IXIC: Nasdaq Futures Slide 2% After Surprise Democratic Sweep Puts AI Trade on Edge

Election results send investors toward bonds and gold, while AMD’s strong earnings provide a brighter counterpoint for semiconductor demand.

🗳️ Election results unsettle the AI trade

• Nasdaq futures fell more than 2% before trimming losses to around 0.8% Wednesday, while S&P 500 futures slipped roughly 0.6%.
• The reversal followed Tuesday’s gains of 0.9% for the Nasdaq Composite and 0.4% for the S&P 500. Election-night optimism proved difficult to hold.
• Democrats won control of both the House and Senate, setting up a divided government for the remainder of President Donald Trump’s term.
• Investors are assessing implications for spending and regulation, with AI-linked shares particularly sensitive after weeks of concern about valuations and the cost of expanding computing infrastructure.
• New federal legislation would face Trump’s veto, while state-level decisions could influence data-center buildout through power and water restrictions.

💻 AMD delivers, global chip stocks retreat

• AMD shares jumped more than 8% after hours following a strong earnings report. Revenue rose 45% to $13.4 billion, while data-center sales nearly doubled.
• Fourth-quarter revenue guidance of $17 billion exceeded expectations, offering evidence of robust AI demand after Intel’s disappointing outlook shook the sector.
• The election reaction quickly spread through Asian tech stocks. Samsung, SK Hynix and TSMC declined, while SoftBank helped drag Japan’s Nikkei roughly 3% lower.
• European futures also fell around 1.4%, showing how fast concerns about US technology policy can affect markets beyond Wall Street.

🥇 Gold gains while bonds attract buyers

• [*Elsewhere, Gold climbed roughly 2.2% to $4,020 an ounce, reclaiming $4,000 while silver rose about 4% to $51.70. A weaker dollar and falling Treasury yields supported metals. Bitcoin briefly dropped toward $75,500 before recovering near $78,200, underscoring how sharply election reactions shifted during Asian trading.
• Oil remained volatile, with Brent near $104.40 and WTI around $96.60. Traders weighed unresolved Iran-war risks against diplomatic efforts and a reported 5.27-million-barrel US crude inventory draw.
• The economic calendar gives traders little time to focus solely on elections. Wednesday brings ADP employment, the Treasury’s quarterly borrowing announcement and ISM services, ahead of Friday’s payrolls.